Interest-Only Private Loans in Costa Rica

An interest-only payment structure may be considered for a private property-backed loan request in Costa Rica when the borrower has a clear plan to repay the principal balance at maturity.

GAP Equity Loans helps qualified borrowers submit property-backed loan requests for private-lender review. Requests start at US$50,000 and up, terms generally range from six months to three years, and we do not ask for a credit score.

GAP Equity Loans works with first-lien property security only. GAP Equity Loans is not a bank and is not the direct lender. Every request is reviewed individually, and approval or funding is never guaranteed.

What Is an Interest-Only Private Loan?

An interest-only structure means the borrower makes the agreed interest payments during the loan term while the principal balance remains outstanding. The principal must be repaid at maturity unless the signed loan documents provide for a different payment structure.

This structure may be considered when a borrower expects a defined future source of repayment, such as a planned property sale, refinance, asset sale, or documented business transaction. The repayment source needs to be practical, credible, and appropriate for the individual request.

Interest Payments and Principal Are Different

Borrowers should understand this distinction before requesting an interest-only structure:

• Interest payments are the agreed payments made during the term for the use of the funds.
• Principal is the original amount borrowed. It remains due at maturity unless the signed loan documents state otherwise.

Making interest payments does not by itself reduce the principal balance. A borrower needs a clear plan for how the principal will be repaid when the loan reaches maturity.

GAP Equity Loans Requirements at a Glance

• Loan requests start at US$50,000 and up
• Terms generally range from six months to three years
• No credit score is requested
• First-lien property security only
• Costa Rica real estate is required as collateral

These points do not guarantee a loan. A private lender still reviews the individual property, title, requested amount, existing obligations, documentation, repayment plan, and exit strategy.

When an Interest-Only Structure May Be Considered

An interest-only payment structure may be considered when the borrower has a defined short-term purpose and a realistic maturity plan. Examples may include:

• Preparing a marketable property for sale
• Completing repairs or improvements needed before a sale
• Addressing a property-related obligation as part of a defined plan
• Supporting a documented construction or renovation stage
• Bridging a timing gap before an expected sale, refinance, or other exit
• Supporting a business purpose tied to suitable real estate collateral

It may not be a suitable structure when there is no clear plan to repay the principal balance at maturity. A renewal should never be assumed.

First-Lien Property Security Only

GAP Equity Loans works with first-lien property security only. This means the title, ownership, existing debt, liens, annotations, taxes, and other registered issues must be understood before a request can be evaluated properly.

An existing mortgage or lien does not automatically prevent a review. However, it must be disclosed early. The property, current obligations, and proposed legal structure must support the request before a private lender can decide whether to proceed.

If a company owns the property, corporate records and signing authority may also need to be reviewed.

What Private Lenders May Review

A private lender reviews more than the proposed payment structure. The full property and borrower file matter.

• Property location, access, condition, and marketability
• Ownership, title, and available signing authority
• Existing mortgages, liens, annotations, taxes, and legal concerns
• Estimated value and available support for that value
• Requested amount and exact use of funds
• How the agreed interest payments will be made during the term
• How the principal balance will be repaid at maturity
• Property documents, construction information, permits, or other relevant details

The real estate is important security, but it is not the repayment plan. A private lender will want to understand both the collateral and the source of repayment.

Does GAP Equity Loans Ask for a Credit Score?

No. GAP Equity Loans does not ask borrowers for a credit score.

The review instead focuses on the Costa Rica real estate offered as collateral and the overall request. Borrowers should provide complete and accurate information about the property, ownership, existing obligations, requested amount, purpose of funds, repayment plan, and exit strategy.

What to Prepare Before Submitting a Request

Clear information helps create a more productive first review. Helpful starting items include:

• A Google Maps, Waze, or WhatsApp location pin for the property
• Current photos of the property, buildings, access, and surrounding area
• Available ownership and registry information
• Plano Catastro or survey-plan information, if available
• Estimated property value and support for that estimate
• The requested amount and exact purpose of the funds
• Details of current mortgages, liens, annotations, or other legal concerns
• A clear plan for interest payments during the term
• A practical plan to repay the principal balance at maturity
• Corporate records and signing authority when a company owns the property

Depending on the request, a private lender may ask for further information before making a decision.

How to Prepare a Stronger Request

A clear and realistic request is easier for a private lender to evaluate. Before submitting information, make sure you can explain the property, the requested amount, the use of funds, current obligations, payment plan, and principal-repayment plan.

• Use current photos and an accurate property location
• Provide realistic support for the estimated value
• Disclose all existing obligations and known title issues early
• Explain the purpose of funds in specific terms
• Show how agreed interest payments will be made during the term
• Prepare a practical exit strategy for repayment of principal
• Confirm property ownership and signing authority
• Use qualified Costa Rican legal, tax, and financial professionals when appropriate

Start an Interest-Only Loan Request

Start by sharing the property location, estimated value, requested amount, purpose of funds, ownership details, existing obligations, and repayment plan. GAP Equity Loans can then determine whether further information may be appropriate for private-lender review.

Submit a property loan request

Frequently Asked Questions

What is an interest-only private loan?

It is a payment structure where the borrower makes agreed interest payments during the term while the principal balance remains due at maturity, unless the signed loan documents provide otherwise.

Does an interest-only payment reduce the principal?

Not normally. Interest payments cover the agreed interest for that period. The principal balance remains due at maturity unless the loan documents state otherwise.

What is the minimum loan request amount?

Property-backed loan requests through GAP Equity Loans start at US$50,000 and up.

How long are the terms?

Terms generally range from six months to three years. The final structure depends on the individual request and private-lender review.

Do you ask for a credit score?

No. GAP Equity Loans does not ask borrowers for a credit score.

What security is required?

GAP Equity Loans works with first-lien property security only. The property must be located in Costa Rica, and its title, ownership, existing obligations, and supporting information must be reviewed.

Can an interest-only loan be renewed?

A renewal is not automatic. Any future financing decision depends on the individual property, title, payment history, available documentation, repayment plan, and private-lender review.

This article is for general information only. It is not a loan offer, legal advice, tax advice, financial advice, or a promise of financing. Loan availability and final terms depend on the individual request, property, documentation, private-lender review, due diligence, and signed documents.

Article by Glenn Tellier (Founder of CRIE and Grupo Gap)